This week I will repeat the analysis issued last week to shelve it in the newly created blog categories. So it you read the previous one - skip the below text or use is as a refresh. I took the opportunities to fix bugs in my counts.
When the price of BTC dipped below the 2021 low I recycled my previous forecast with sideways correction. And now I hold the view that BTC will eventually go to 20,000 level. But not immediately. As I anticipate a bounce in stocks I also anticipate a bounce in crypto.
As for some degree of confirmation I look at the moving averages that can weave the resistance trendline to cap wave iv. In the Ethereum chart below I kept moving averages in to let you see how they formed the trendline before and how they an act as a dynamic resistance now.
The Big Picture in Crypto
Expanded flat usually happens in wave 2. That means that we indeed might have wave 3 ahead.
Having looked at BTCUSD I concluded that everything prior to 2021 might have been the first wave up since its inception. If the price declines to finish wave 2 (circle) it may bounce from 200MA and start the long-term bull trend in wave 3 (circle).
It is not the intention of this report to give out buy or sell signals or any trading advice. This material represents my view on the markets and shall not be regarded as an invitation to open trading positions.